Orange County bankruptcy lawyer can protect your rights against predatory lending
The San Francisco Chronicle reports that the number of California bankruptcies continues to soar, despite the overhaul to consumer bankruptcy laws five years ago.
Our Riverside bankruptcy lawyers and Orange County bankruptcy attorneys continue to report on the record number of consumer bankruptcies occurring in the Los Angeles area and throughout California.
An estimated 120,000 California consumers could seek bankruptcy protection this year. Real estate debt, credit card debt and medical bills are the primary causes of consumer bankruptcy filings.
The overhaul of the bankruptcy laws was heavily lobbied for by credit card companies five years ago. The new rules created an income-to-debt test for consumers wishing to file for Chapter 7 protection. Chapter 7 bankruptcy completely forgives most debt, including credit card debt, but the new rules require certain consumers to establish a repayment plan. A Chapter 13 bankruptcy is the traditional form of bankruptcy that establishes a repayment plan.
Either filing will stop bill collectors and other harassment that frequently results when consumers reach the financial breaking point. Both means of bankruptcy protection can provide a fresh start and an end to the crushing weight of serious financial problems.
Those who backed the new rules believed the large spike in bankruptcies right before the new laws took effect in 2005 was an anomaly that would not be repeated. Those of us who fight for the rights of struggling consumers on a daily basis knew better. Insurmountable levels of consumer debt are what drive bankruptcies. And the banks and credit card companies have played a key role in building the high debt levels of American families, even as these companies fought to make it more difficult to seek bankruptcy protection.
Bankruptcy filings in California and nationwide are now approaching the elevated levels of 2005 in the months before the new laws took effect. The huge numbers of filings have restarted the debate over whether irresponsible consumers or predatory lenders are primarily to blame.
One thing is certain, the predatory lenders have their advocates. Consulting a bankruptcy attorney in the Los Angeles area will help ensure that your legal rights are protected as well.
Consulting an experienced San Bernardino bankruptcy lawyer can help determine the best course of action to deal with consumer debt and restore your financial independence. The Shakoori Law Group, a law firm dedicated to bankruptcy, debt collection defense and consumer protection, can be reached at (877) 529-2188.
